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Tax dues and lein on property

Oakland, CA |

due to severe business losses i did not file company taxes for couple of years. now i am receiving bills with penalty from state. what is the process for state to get lein on my properties or assets. i am just preparing to file the late taxes and ask them for letter of compromise. i am looking for a good attorney but i don't want my bank accounts frozen. how much time does it take to get to that step?

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Attorney answers 4


You should retain a tax attorney in CA who can assist you with CA tax matters. Best of luck!

Andrew B Gordon is a CPA and attorney licensed to practice law in Illinois. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.


If all you are getting is bills with penalty notices, you do not yet have a lien problem. Start making payments and you are less likely to get hit with a lien. If there is a phone number of the notice, call the number and talk to someone. You are not going to get a compromise unless you have a long-term income problem. You may, however, get an installment agreement. Just Google installment agreement franchise tax board and you will be taken to the web site where you will be given a phone number to call. You can also fill out the application on-line.


If this is a corporation or LLC the lien will be on the company only and you will not have personal liability for the taxes so long as there are not any payroll taxes or sales taxes. This can be a complex matter and you should contact a tax attorney to help you through this maze. I offer a free consultation if you would like to discuss this further,

H. Daniel Lively, Esq., LL.M., CPA Certified Tax Specialist, CA Board of Legal Specialization 714-708-2593 Mr. Lively is a Certified Tax Specialist by the State Bar of California Board of Legal Specialization. He can be reached at 714-708-2593 or individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.


Your question is a little confusing in that you state your business is losing money and you apparently did not file state taxes. If your company made no money your tax return will report a loss. On that basis, the only tax you would pay in California would be the $800 minimum tax. If you have several years of $800 minimum tax penalties, there must be more to the story then what has been presented in your short factual summary. If you did not file Federal taxes you would still have been reporting a loss with no taxable income, so you really won’t save any money by not filing taxes. You should immediately file the tax returns, which should provide you with a loss to carry forward.

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Thank u. The company is S corp. there are two was gas station and the other software services income. The payroll,personal,sales taxes are paid but some income was invested in stocks through personal account and all lost. Could not pool up the money to file. What are the tax implications. I just started receiving penalty bills from state, no fed yet. The gas station is in a different state so state and fed are filed,paid

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